ESG Holdings' Response to WENY - Solar Project - 2023 - 09

Dennis Ryan, Manager ESG Energy Holdings, LLC PO Box 114 West Falls, NY , 14170

Mr. Earl Titus Chairperson Town of Lindley Planning Board

RE: Proposed EV Charging Station with onsite Solar and digital signage at 9155 Smith Road, Painted Post, NY

Dear Mr. Titus,

I hope this letter finds you in good health. I am writing to provide further clarity and address some of the questions that arose during the Town of Lindley Planning Board meeting held last night regarding ESG Energy Holdings, LLC’s proposed project for the commercially zoned land adjacent to the Presho exit from Route 99.

First and foremost, I want to emphasize our commitment to the local community and our desire to collaborate closely with the Town of Lindley. The 27-acre parcel of land in question has been contributing to the local tax revenue for decades, with the current landowner paying approximately $4,000 per year. Over the past ten years, this has amounted to a significant $40,000 in tax revenue for the local taxing jurisdictions.

Our Proposed Project is a comprehensive initiative that includes a 3.0 Megawatt (MW) Solar Project, Digital Signage, and a 950 Square foot Electric Vehicle (EV) charging station. While this is our first EV charging station project, it is important to note that we have successfully executed similar solar and digital signage projects in the past.

Now, let’s delve into the substantial economic benefits that our project will bring to the community. The Project is designed to generate Real Property (RP) tax revenue from two primary sources. Firstly, there is the Payment In Lieu of Taxes (PILOT) for the Solar Project, which is directly tied to its rated size. At the current tax rate of $4,500 per MW per year, the Solar Project alone will contribute $13,500 annually, translating to an impressive $337,500 in RP tax income over 25 years.

The second source of RP tax revenue will come from the 950-square-foot charging station, estimated at approximately $5,000 per year, adding another $125,000 over the same 25-year period. When combined, the tax revenue generated by our proposed project will exceed $462,500, equating to $18,500 per year. In contrast, if the current landowner continues to pay taxes without the project, the RP tax income over the same timeframe would only amount to $100,000. Therefore, our plan offers a net additional tax income of $362,500 over the same period.

Moreover, I want to highlight an alternative scenario. If we decide not to proceed with the project at this site, there is a second offer from the Finger Lakes Land Conservancy. If they acquire the land, it will be donated to the State, similar to the recent transfer of 990 acres. In this case, the potential RP income for the Town, County, and Schools will be reduced to zero indefinitely.

In addition to these substantial tax benefits, ESG Energy Holdings, LLC is committed to supporting the Town of Lindley through a Community Benefit Donation of $6,000 per year. Over the project’s lifespan, this will amount to a generous total donation of $150,000, further demonstrating our dedication to the local community.

Lastly, I would like to address concerns raised during the meeting about end-of-life decommissioning. We are fully committed to responsible project management. Upon completion of construction, we typically provide a bond for the project’s removal to the Town, with the bond amount adjusted regularly to account for inflation and the Consumer Price Index (CPI) level.

Regarding the recycling of solar panels, please be assured that disinformation regarding the cost per panel was spread during the meeting. The actual cost for recycling each panel is significantly lower than the false figure of $3,000 each. We have a well-thought-out decommissioning plan that includes the accurate and reasonable cost per panel for recycling in Rochester, NY. The bond amount is based on our receiving one or more quotes from reputable contractors for the system removal.

In conclusion, I want to emphasize that the tax benefits of $18,500 per year for 25 years, coupled with our substantial community benefit donation and the employment opportunities for Town of Lindley residents, make this project a clear win-win for all parties involved. We are earnestly seeking your support and that of your esteemed board to move forward with this endeavor, which promises to bring lasting prosperity to our community.

Our plan for the project includes us completing our due diligence with all stakeholders, regulatory agencies and affected parties. Once we have compiled all of the data, we plan on returning to the Planning board with Project Specific data that will be needed for us to obtain the project’s building permits.

Thank you for your time and consideration. Please do not hesitate to reach out if you have any further questions or require additional information. We look forward to working closely with the Town of Lindley to ensure the success of this project.

Sincerely,

Dennis Ryan

Manager

ESG Energy Holdings, LLC